What To Do Before Bidding On A Property At Auctions

Buying a property at auctions has the advantage of giving buyers a chance to acquire a home with a minimum amount of fuss

. Unlike other ways of purchasing foreclosed dwellings, real estate auctions do not involve a drawn out process and the winning bidder is saved from the worry of losing his acquired home to other bidders who have better offers.

Need for Familiarization

But this does not mean that a buyer should not prepare for the actual auction event. As a matter of fact, the preparation required for buying a home at auction might be even longer and more detailed than the preparation needed for a direct purchase from a lender or a property owner.

Potential bidders can find out about the homes that will be auctioned by requesting the auction house for a catalog where the properties on offer are all listed. Most auction houses prepare their catalogs a few weeks before the actual bidding is to take place. This provides potential buyers a chance to look at the properties they are interested in and they should spend these few weeks doing exactly that.

Before attending the actual event, a home buyer interested in bidding on a property at auctions should attend a similar one, preferably handled by the same auction house responsible for selling off the home he is interested in. This way, he can get the feel of the atmosphere and learn one or two strategies from other bidders.

Preparing the Financing

Buyers should remember that the winning bidder is required to provide at least ten percent of the purchase price right after being declared the winner of the bidding contest. This deposit should be in cash or in cashier's check. Fees like auction house commissions and closing costs are also often required right after the event. Home buyers should also take note of the auction rules governing the place where the event will take place. In some areas of the U.S., a buyer is not allowed to bid unless he carries with him the full purchase amount of the property he wants to bid on.

Buying a property at auctions offers a convenient way to acquire a dwelling. However, home buyers should be prepared and should spend the free weeks leading to the event inspecting the properties he plans to bid on.

by: Joseph B. Smith

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